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Clorox 4Q slumps
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August 8, 2001: 9:31 a.m. ET
Slow sales continue to hurt household products maker's earnings
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NEW YORK (CNNfn) - Clorox Co. reported fourth-quarter and full-year earnings Wednesday that edged Wall Street estimates, though a slump in sales of home care, food and laundry products offset gains of such seasonal products as charcoal.
Clorox reported earnings in the quarter ended June 30 of $108 million before one-time items, or 45 cents a share, down from $138 million on the same basis, or 58 cents a share, a year ago.
Wall Street analysts expected Clorox -- which makes Clorox bleach, Glad trash bags, Armor All car-care products and a host of other household items -- to earn 43 cents a share, according to earnings tracker First Call.
For all fiscal 2001, Clorox earned $390 million before one-time items, or $1.63 a share, compared with $420 million, or $1.75 a share, a year ago. Wall Street analysts expected $1.61 a share, according to First Call.
Full-year estimates were lowered last December, when Clorox warned that slow sales and problems with its acquisition of First Brands would cause it to miss Wall Street expectations of $1.95 a share.
"While we're encouraged by some positive momentum, we know we need to demonstrate sustained stronger performance going forward," CEO Craig Sullivan said.
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The company offered no guidance about earnings for its current quarter or 2002, but said the slump likely will continue.
"We expect that the challenges we faced during the second half of fiscal 2001 will continue to be present for at least the first half of fiscal 2002 and that overall volume growth for the fiscal year will be modest," Sullivan said.
The Oakland, Calif.-based company reported fourth-quarter revenue slipped to $1.1 billion from $1.13 billion a year ago. Full-year sales fell to $3.9 billion from $4 billion.
The sales slump was due mostly to overseas exchange rates, Clorox said, though U.S. sales of household products fell 9 percent in the quarter. Sales of such seasonal items as Kingsford charcoal and Armor All helped boost earnings in the quarter.
Clorox also announced a $500 million share repurchase program over the next two to three years.
Clorox (CLX: Research, Estimates) shares closed Tuesday down 24 cents at $35.30. 
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Clorox
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